Low Yields Signal Investor Confidence in New PM

By

Emese Bartha

Feb. 27, 2014 7:04 a.m. ET

Italy's funding costs were near decade lows at a debt auction Thursday, a clear sign of investor confidence in the country after Matteo Renzi's new coalition government won the backing of the Senate earlier this week, promising radical reform of the Italian economy.

The Italian Treasury sold €9 billion ($12.32 billion) of debt, the maximum amount it had targeted, in 2019- and 2024-dated conventional fixed-rate bonds, or BTPs, and two...